Europe risks ‘digital dollarization’ as banks race to launch euro stablecoin

A consortium of 12 major European banks, including ING, UniCredit, and BBVA, is working to launch a euro stablecoin through the Qivalis project to counter the increasing dominance of the U.S. dollar in the blockchain-based financial system. CEO Jan-Oliver Sell warns that without a robust euro presence onchain, Europe risks losing financial and digital sovereignty, as the dollar currently accounts for approximately 98% of transactions in the blockchain space, a stark contrast to its 20-25% share in traditional finance. Qivalis aims to become the primary issuer of euro stablecoins globally, functioning as an interface between blockchain and the euro, and is designed to address fragmentation issues that have hindered previous euro stablecoin initiatives. While the European Central Bank (ECB) is also developing a digital euro, Qivalis will be a private, MiCA-regulated stablecoin, complementing rather than competing with the ECB’s centralized approach. The project emphasizes the need for a euro-native asset on public networks to avoid forced reliance on the dollar for onchain activities and to ensure Europe maintains its position as a key player in the evolving financial landscape.

(Source：CoinDesk)